Capital Credits

Because Fergus Electric is a cooperative, the money earned over expenses each year is allocated to the membership in the form of patronage. The amount allocated to each member is based on the net margin (revenue less expenses) of the cooperative, and the amount of total electricity purchased by each member.

Capital Credits are allocated annually. Each active member is sent a capital credit statement showing the current capital credit allocation and a total of the years combined. This statement shows a member's equity in Fergus Electric Cooperative.

Every year the Fergus Electric Cooperative board reviews the overall financial condition of the cooperative and determines the financial requirements. There are times when the cooperative has built up a reserve. In this case, the board of directors may authorize a "retirement" of capital credits in the form of cash payments to the members. Estate capital credits are paid upon application.

Members wishing information in regard to capital credits may call Susie at 406-538-3465.